SOE Faculty Gabe and Crawley show large declines in Maine’s hospitality businesses due to COVID-19

Sales at Maine hospitality businesses stand to decline between 35 and 42 percent this year due to COVID-19, according to a new report by UMaine Professors Todd Gabe and Andrew Crawley of the School of Economics.

“As of right now, we’re expecting 2020 hospitality sales of between $2.5 billion and $2.8 billion, which is a steep drop compared to the $4.3 billion in sales recorded last year,” said Andrew Crawley, one of the study’s authors.

The study uses taxable sales data from Maine Revenue Services and daily COVID-related impacts from the Opportunity Insights project, which provides up-to-date estimates of reductions in hospitality sales in Maine and the rest of the United States.

“The monthly sales figures from Maine Revenue Services are currently available through April, and we used the Opportunity Insights data to track hospitality spending as recently as the middle part of June,” notes Gabe.

The research team plans to update the study in August, when data are released for summer hospitality sales. “The summer is a particularly important time for Maine hospitality sales,” explains Crawley. “About one-half of 2019 sales took place between June and September.”

“It’s important for people to note that our research focuses on the hospitality sector as a whole, which is a combination of restaurants and lodging establishments,” Gabe said. “Restaurant sales account for over two-thirds of Maine hospitality sales, so our estimates don’t necessarily show what’s happening in hotels across the state.”

Click here for a link to the report.

Click here for coverage of the report by the Portland Press Herald.    

Click here for coverage of the report by News Center Maine.